How to get up after a fall: Tylenol in 1982

In September of 1982, seven people died after taking Extra-strength Tylenol that had been laced with cyanide. The market share of Tylenol plummeted from 37% to 8%.

(picture from consumerist.com)

Johnson and Johnson dealth with this incident very wisely. First of all, it issued an immediate recall of its products off the markets suffering a loss of $100 millions dollars. Second, it introduced a tamper-evident seal packaging as the first pharmaceutical company to comply with FDA's packaging guidelines. This combined with special offers and a new advertising campaign, Johnson and Johnson was able to make a comeback and is now one of the most respected companies in the world.